Read the case study in Appendix A, and answer the following questions: a....

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Accounting

Read the case study in Appendix A, and answer the following questions:
a. Perform a financial analysis for the project by calculating its:
NPV,
ROI,
Payback period;
using a discount rate of 9% and a 5-year projection. Use Excel to perform the above analysis, and use formulae wherever possible. (Please submit the Excel file as well.)
b. According to business growth forecast, there is a need to purchase additional hardware and software in Year 3, and the costs are estimated as HK $500,000 for hardware and HK$800,000 for software.
Re-calculate the NPV, ROI and payback period for this project. Open another worksheet in the spreadsheet file for this calculation.
Note that the additional hardware and software maintenance costs will take effect fromYear 4.

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